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Just like how there are blue-chip stocks in Canada that investors should hold in their portfolios, there are also blue-chip American stocks that could be excellent holds. In addition, investing in American companies gives Canadians an opportunity to diversify their portfolios. This provides many benefits, including the potential for greater growth and stability during economic downturns. In this article, I’ll discuss three U.S. stocks that could be no-brainers for Canadian investors.
One of the most well-known companies in the world
No matter where you are, you’re never too far from a Walmart (NYSE:WMT). In fact, as of July 31, 2022, there were 10,585 Walmart locations worldwide. What’s impressive is that Walmart has done an excellent job of growing internationally. In fact, there are nearly 2,800 locations in Mexico alone. That compares to 402 locations in Canada. With that massive footprint in the retail industry, Walmart makes an attractive investment for any portfolio.
In the second quarter (Q2) of 2023, Walmart reported US$152.9 billion in net sales. That represents an 8.4% year-over-year increase compared to the same period last year. It should also be noted that, within the U.S., Walmart’s e-commerce sales grew 12% year over year. That willingness to offer online shopping options to consumers shows that Walmart is dedicated to remaining competitive in the future.
This company is massive
Procter and Gamble (NYSE:PG) is another company that Canadians should consider holding in their portfolio. Although its name may not be that well recognized, there’s no doubt that you’ve heard of and used many of its products before. Distributing more than 60 brands, Procter and Gamble is responsible for the likes of Bounty, Crest, Febreze, Gillette, Old Spice, Pampers, and Tide, among many others. That breadth in Procter and Gamble’s offering is what attracted me in the past, when I made it the first stock in my portfolio.
In Q4 2022, Procter and Gamble reported US$80.2 billion in net sales. That represents a 5% year-over-year increase. Among its business units, Procter and Gamble reported that sales growth was mostly driven by its healthcare and home care products. It should be noted that Procter and Gamble is dedicated to disrupting its industry. It stated in its most recent annual report that the company would pursue a lean innovation strategy and use data analytics to determine the best avenues for growth.
Invest in the biggest company in the world
When it comes to American companies, one name that all Canadians should be familiar with is Apple (NASDAQ:AAPL). With a market cap of nearly US$2.6 trillion, it’s the largest company in the world. Not only that, but more consumers are using Apple products now more than ever before. It’s estimated that more than one billion people use an iPhone today.
For Q3 2022, Apple reported US$83 billion in revenue. That represents a 2% year-over-year increase. It’s unclear how the company’s revenue will stack up to finish the year, since consumer spending remains at very low levels. However, with the iPhone 14 expected to be released next month, we could be coming up to a big quarter for Apple.